Latvian 'green bonds' join Nasdaq Baltic bond list

Take note – story published 2 years ago

Nasdaq announced November 29 that green bonds issued by Latvian transmission system operator Augstsprieguma tīkls AS (AST), have been listed on the Nasdaq Baltic Bond List in Rīga. AST becomes the first Baltic transmission system operator to issue and list green bonds on the Baltic market.

The size of the issue of green bonds with a nominal value of EUR 1,000 is EUR 100 million, and this is company’s first issue under first AST bond issue program of EUR 160 million.

Issued bonds have a fixed annual coupon of 0.5% and they mature on January 20, 2027. The raised funds from the first issue will be allocated to refinancing the Kurzeme Ring 3rd stage, CHP-2 (combined heat and power plant) to Riga HPP (hydro power plant) and Latvia - Estonia 3rd Interconnection infrastructure project.

"The AST bond issue attracted significant interest from the investor community and was oversubscribed more than 2 times. More than 20 investors participated in the bond offering, among them pension and asset management funds, insurance companies and banks in Baltic and Nordic region, as well as European Bank for Reconstruction and Development and the Nordic Investment Bank," said Nasdaq.

“The listing of AST green bonds is an important milestone towards a sustainable future. We are delighted that AST has chosen to list its first green bonds on the Nasdaq Riga in the Baltic regulated bond market and welcome the company as a new issuer to the exchange,” said Daiga Auziņa-Melalksne, the CEO of Nasdaq Riga and the Head of Nasdaq Baltic Exchanges.

“The green bond issue of AST is essential for implementing energy projects of national importance and is a significant step towards achieving Green Deal," said Jānis Reirs, the Minister of Finance.

Augstsprieguma tīkls AS (AST) is a transmission system operator, which operates the national electric power transmission network. The owner of all AST shares is the Ministry of Finance of the Republic of Latvia (100%), while in turn AST holds 68.46% of the shares of the natural gas transmission and storage system operator JSC Conexus Baltic Grid. Read more

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